Shell subsidiary Savion pays $17.8M to Altmark Group for industrial in Mott Haven

Savion, a subsidiary of Royal Dutch Shell energy company, through the entity Bronx Shores Energy Storage LLC paid $17.8 million to Altmark Group through the entity 450 Timpson Owner LLC for industrial building (E9) at 450 Timpson Place in Mott Haven, Bronx.
The deal closed on December 29, 2022 and was recorded on January 5, 2023. The property has 27,000 square feet of built space and 185,300 square feet of additional air rights for a total buildable of 212,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $657 and the price per buildable square foot is $83 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on April 13, 2022, for $9.8 million. The signatory for Altmark Group was Adi Altmark. Savion is a wholly owned subsidiary of Royal Dutch Shell.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Savion had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Altmark Group purchased one properties in one transactions for a total of $9.8 million and sold one properties in one transactions for a total of $6.5 million over the same time period. The 27,000-square-foot property generated revenue of $387,990 or $14 per square foot, according to the most recent income and expense figures.

The property

The 450 Timpson Place parcel has frontage of 250 feet and is 200 feet deep with a total lot size of 42,500 square feet. The lot is irregular. The zoning is M1-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.9 million.The most recent loan totaled $6.8 million and was provided by Louise Bonsignore on April 13, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Mott Haven, the bulk, or 43 percent of the 41.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 24 percent of the space. In sales, Mott Haven has 2 times the average sales volume among other neighborhoods with $717.3 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 9th most active neighborhood among other neighborhoods. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 38 commercial properties representing 115,459 square feet of the 613,855 square feet. The largest owner is Sheri Bleustein, followed by Dunn Development Corp. and then City of New York.
On the tax block, there were three new building construction projects totaling 238,501 square feet. The largest is a 167-unit, 144,749-square-foot R-2 building developed by Daniel Rad with plans filed August 16, 2016 and permitted April 25, 2017. The second largest is a 80-unit, 57,569-square-foot R-2 building developed by Martin Dunn with plans filed March 15, 2019 and permitted July 30, 2019.

The majority, or 66 percent of the 486,695 square feet of built space are industrial buildings, with elevator buildings next occupying 15 percent of the space.

The seller

The PincusCo database currently indicates that Altmark Group owned at least 14 commercial properties in New York City with 403,743 square feet and a city-determined market value of $36.2 million. (Market value is typically about 50% of actual value.) The portfolio has $89.1 million in debt, with top three lenders as Dime Community Bank, TriState Capital Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 69 percent of the 403,743 square feet of built space are industrial properties, with specialty properties next occupying 25 percent of the space. They are all located in Bronx.

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